5. Readings a. Six
movie studios movie studios receive
90% of American film revenues. b. The television industry is mostly an oligopoly of five companies:
Disney/ABC
,
CBS Corporation c.
NBC
Universal
Time
Warner and
News Corporation See
Concentration of Media Ownership
. d. Four major
music companies receive 80% of recording
revenues. e. Four wireless providers control 89% of the cellular telephone market.f. There are just six major book publishers.
g. Healthcare insurance in the United States consists of very few insurance
companies controlling
major market share in most states. For example, California's insured population of 20 million is
the most
competitive in the nation and 44% of that market is dominated by two insurance
companies, Anthem and Kaiser Permanante.
h.
Anheuser-Busch and
Miller Coors control about 80% of the
beer industry.
B.
Three well-defined pricing models exist 1. Kinked
demand
2. Collusive pricing 3. Price
leadership Please

Unit I. Review
Barriers to entry allow a few a firms producing
homogeneous or heterogeneous products with
to some control price and quantity

II. Kinked demand A. Describes a
situation where a strong interdependency exists among
firms within an industry B. A firm's demand curve
tends to be elastic above equilibrium price as price increases are not followed by competitors. If they do follow, industry supply has
changed. C. A firm's demand curve
tends to be inelastic below equilibrium price as price decreases must
be
followed by competing firms. If competitors do
not follow, a monopoly situation could be developing. D. This interdependency of pricing is
studied with game theory models where players react to possible pricing
situations in a similar
manner to the strategy of people playing chess or poker. E.Econ Concepts in 60 Seconds:
Kinked Demand Curve F.
Kinked
demand curve theory from You Tube G.Need more, try
Kinked Demandfrom Amos Web.
Unit II. Review Interdependency of firms
results in demand that is elastic at high prices and inelastic at low
prices.

V. Economic analysis of oligopolyA. Restrictive
oligopolies tend to be very monopolistic in nature with
1.
P > MR = MC
2.
Production is not at the lowest point indicated by the AT Curve.
3.
Economic profits exist and quantity is restricted.
B. Progressive oligopolies
have high economic profits in spite
of price decreases
brought on by high-tech efficiencies.

"A
confluence of forces is behind
Big Tech’s business-model
ferment. Blowback over privacy
abuses and misinformation
threatens ad-driven strategies
at Facebook and Google built on
harvesting people’s information
and maximizing the time they
spend glued to the internet. The
smartphone, which underpinned so
much of the tech industry’s boom
over the past decade,
is maturing, with incremental
innovation and flagging sales.
And the law of large numbers,
combined with the tech
industry’s history of upstarts
leapfrogging incumbents on
innovation, compels executives
to seek out new places to
disrupt, lest they themselves be
disrupted.

Still, as they
stretch into new domains, tech’s
titans increasingly bang into
each other. Amazon’s advertising
effort is impinging on Google
and Facebook, both of which are
also muscling up against Amazon
in e-commerce. Facebook’s
messaging shift threatens Apple,
whose Messages app is important
to its services push. So do
Amazon and Google’s forays into
hardware. Apple’s Hollywood
campaign encroaches on Amazon,
which already spends billions of
dollars annually producing
entertainment.

Peter Barrett, a
veteran tech executive who
co-founded venture investor
Playground Global, says the
shifting business models could
reorder the dominance of the
tech giants. The rise of new
technologies like voice
assistants that build on or
displace the smartphone will
help determine which established
companies — and which new
players — thrive. “Some will
make the transition,” he says,
“and some will see their power
eroding."

Monopolistic competition.
A market structure in which several or many sellers each
produce similar, but slightly differentiated products.
Each producer can set its price and quantity without
affecting the marketplace as a whole.

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